Bitcoin’s overall market dominance continues to increase, a factor that could further postpone the much awaited altcoin season. Market analyst Tony Severino notes that the current strong momentum of Bitcoin is very evident from recent chart patterns. He argues that altcoins will probably continue to languish in Bitcoin’s wake for the next several years at least. Severino noted a potential Dragonfly Doji pattern on the weekly Bitcoin Dominance chart. He underscored high Relative Strength Index (RSI) – one of the leading indicators behind Bitcoin’s ongoing strength. This is shown by technical signals that suggest Bitcoin is passing the test with flying colors. Consequently, altcoins have significantly less chance to pump.
Severino published his analysis on X. He pointed out how crucial the Dragonfly Doji and RSI levels are to grasp the current market structure. The view from the top The new analysis paints a convincing picture of Bitcoin’s corrosive influence — or lack thereof — on the wider cryptocurrency arena. With Bitcoin's dominance showing no signs of waning, investors and enthusiasts are closely watching these indicators to gauge when altcoins might finally have their moment.
Decoding the Dragonfly Doji
Tony Severino’s analysis focuses specifically on the developing Dragonfly Doji. He’s looking at this pattern on the weekly Bitcoin Dominance chart. The Dragonfly Doji is a candlestick pattern characterized by a long lower wick and a close near the opening price, resembling the shape of a dragonfly. These reversals often signal that buyers stepped in to support price following a sharp downside move. This action is a positive sign that there may be bullish momentum to come.
Severino thinks that this particular Dragonfly Doji could be a sign that Bitcoin’s bull run is here to stay. Or, it might just indicate a short-lived halt to the pattern of steadier loss. The technical analyst advises to watch closely how this candle continues to develop as the next four days of the weekly run pass. Should the candle develop into a bigger bullish body, it would most probably close above 65.65% support level. If enacted, this move would cement a continued rise in Bitcoin’s market dominance. This would be an additional blow to the hopes for a soon-touting altcoin season.
In this case, the pattern creation is remarkable. BTC Dominance (BTC.D) has been on a bullish trend since late 2023. Bitcoin is on one of its great booms. If this potential Dragonfly Doji prints, it will further the case of BTC maintaining its dominance in the overall cryptocurrency market. Investors are nervously watching to see if this trend becomes established as that would likely determine market direction over the next several weeks.
RSI Readings Reinforce Bitcoin's Strength
In addition to the Dragonfly Doji, Tony Severino's analysis emphasizes the importance of the Relative Strength Index (RSI) in assessing Bitcoin's dominance. RSI is the most popular momentum indicator used by most technical traders. It calculates momentum to recent price action to determine if the entire market is currently overbought or oversold. Severino warns that weekly and monthly RSIs are breaking above the key 70 level. This increase is a great indicator showing powerful buying action and continued positive momentum for Bitcoin.
Interestingly, these RSI values are still well above their MA baselines of 67.31 and 65.42 respectively. This continued strength only adds to the argument that hopes for an altcoin season this cycle are still a bit too early. As we see on the RSI, Bitcoin is under very strong buying pressure. This macro trend keeps broader altcoin rallies from getting out of hand.
Bitcoin’s market cap dominance has climbed back up to 65.72%, as the #1 crypto once again strengthens its firm grip atop the crypto market. The high RSI values, combined with increasing market cap dominance, signal that Bitcoin is not only holding its own but actively gaining strength. This is very important for investors to understand when trying to make the right investment decisions with their crypto portfolios.
Implications for Altcoin Season
The combination of the potential Dragonfly Doji and high RSI readings on Bitcoin Dominance charts has significant implications for the possibility of an altcoin season. Economist Tony Severino’s analysis Bitcoin seems to be as strong as ever. Consequently, altcoins are poised to have a tough go of it in the near-term. An altcoin season occurs when the altcoins, crypto assets other than Bitcoin, experience massive run ups in price. In these stretches, they tend to beat Bitcoin itself, on average.
Bitcoin’s market cap dominance is slowly recovering. From a technical perspective, the indicators are still pointing to strength right now, but conditions for an altcoin season would need to be established. The analyst’s observations paint a picture where Bitcoin is most certainly winning the investment capital race. As a result, there’s just less out there for altcoins to pump. Both monthly RSI and readings are now rocketing past the key 70 marker. This pump is obvious proof that any dreams of an altcoin season during this cycle are way too early.
Investors looking forward to an altcoin season should manage their expectations and keep a careful eye on Bitcoin. As long as Bitcoin keeps holding onto its market dominance, it may be a while before altcoins get their time to shine. The analyst’s proprietary insights give them a unique view into the market and emerging trends within it—which, in turn, helps investors like you make more informed decisions.
